The 'BB+' corporate credit and senior unsecured debt ratings on media holding company Liberty Media reflect its large equity portfolio and the growth prospects of its majority-owned and wholly owned operations. These factors are partially offset by our view that management's financial strategy could become more aggressive and shareholder-favoring. Total debt outstanding as of March 31, 2008 was $13.1 billion (outstanding principal). Liberty completed its equity swap with News Corp. (BBB+/Stable/--) in February 2008 for a 41% stake in satellite direct-to-home TV provider, DIRECTV Group Inc. (The) (BB/Stable/--), as well as other lesser News Corp. assets and cash. Liberty subsequently purchased additional shares in DIRECTV pushing its equity stake to about 48% on April 3, 2008. More recently, in May
